This Illinois wage payment act checklist adds duties and 2026 amounts to the overview.
What the law requires
| Requirement | In plain words | Section |
|---|---|---|
| Pay schedule | At least semi-monthly, with monthly exceptions; due within 13 days after a semi-monthly or bi-weekly period | 115/3, 4 |
| Form of pay | Check, direct deposit to an account the employee names, or a compliant payroll card | 115/4 |
| Final pay | At separation if possible, by the next regular payday at latest; includes earned commissions and bonuses | 115/5 |
| Deductions | Private employers: only if required by law, benefiting the employee, under a valid assignment or order, or on written consent at the time | 115/9 |
| Notices and stubs | Tell hires the pay rate and payday; a stub every period; copies in 21 days on request | 115/10 |
Key numbers and dates
| Item | Figure or date | Year |
|---|---|---|
| Damages for late pay | 5% of the underpayment per month, plus attorney's fees in a suit | 2026 |
| IDOL fee | $500, $750 or $1,250, by wages ordered | From August 1, 2025 |
| Ignoring a demand or order | After 15 days (demand) or 35 days (order) without timely review: 20% of the amount owed to IDOL, plus 1% a day to the employee. Other violations such as a missing stub: up to $500 each | 2026 |
| Willful refusal to pay when able | Misdemeanor on conviction; Class 4 felony if repeated within 2 years of a conviction | 2026 |
| IDOL claim deadline; stubs kept | 1 year after the pay was due; 3 years | 2026 |
Source: 820 ILCS 115/14(b)
Recent and pending changes
- August 1, 2025 (final): P.A. 104-135 raised IDOL's fees and kept damages running during an IDOL hearing.
The named checklist: your Illinois wage payment act checklist
The Stub-Stamp-Settle Routine:
- Put each hire's pay rate, payday and place of payment in writing; post the paydays notice (remote staff: email or website posting).
- Set a pay calendar with every check inside the 13-day window.
- Match each deduction to a legal basis or to consent signed at the time.
- Build stubs with every required field; keep copies 3 years (tax records: 4).
- Pay all final compensation by the next regular payday.
- Adopt a written expense policy; employees claim necessary expenses within 30 days unless it allows longer.
- Test each contractor under the Illinois three-part test, not only the IRS's.
Common mistakes
- Paying a leaver on a later "final paycheck" date.
- Forfeiting earned, policy-granted vacation at separation.
- Holding the last check until a uniform comes back.
- Deducting shortages without a signed agreement at the time.
When to bring in an attorney
- An IDOL claim, demand letter or lawsuit arrives.
- Contractor status, or a deduction backed by a written agreement, is disputed.
- Staff work in several states or countries.
How we can help
We handle the U.S. tax, payroll and accounting side, working with your attorney, Canadian CPA or Indian CA. See payroll and employer compliance, bookkeeping and accounting and our Illinois payroll guide.
Frequently asked questions
How soon must final pay be made in Illinois?
At separation if possible, and no later than the next regular payday.
What is the deadline for an Illinois wage claim?
One year after the pay was due, for an IDOL claim. Lawsuits fall under a 10-year rule (735 ILCS 5/13-206); ask an attorney.
Can an employer hold pay for an unreturned uniform?
IDOL says no; shortage deductions need written consent at the time.
Does the Act cover someone who works outside Illinois?
IDOL says the work must be performed in Illinois to claim. Cross-border work needs an attorney; payroll tax is in hiring US employees from abroad.
Official sources
- Illinois General Assembly: Wage Payment and Collection Act (820 ILCS 115)
- Illinois Department of Labor: Wage Payment and Collection Act
- Illinois Department of Labor: Deductions from Pay FAQ
- Illinois General Assembly: Public Act 104-135
- IRS: Employment tax recordkeeping
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.